underground coal gasification · wca international coal and climate summit warsaw, 19th november...

WCA International Coal and Climate Summit Warsaw, 19th November 2013

Underground Coal Gasification A Clean, Safe, Indigenous

Energy Supply

Presented by Julie Lauder, CEO UCG Association


Underground Coal gasification

• The process of gasifying coal whilst in situ

• Operating at depths of up to 2000 metres

• UCG can be applied on and off shore enabling access to vast quantities of the worlds otherwise unrecoverable coal

• In recent years the technology has progressed greatly

• Much of this development and growth and interest has been spearheaded by the UCG Association


Not for profit member based organisation

Accelerate the safe commercial development of UCG

Dedicated events – workshops, conferences, training – share knowledge, information, expertise - the next generation of industry specialists

Governments, Decision makers, Licensing & Regulatory Bodies, Potential stakeholders, Environmental Groups and the Media

Public and independent information service on UCG

Over 50 members: oil & gas, national governments, regional agencies, banks, accountants, lawyers, providers of UCG services, UCG operators, universities, energy associations, coal associations, energy advisors, utilities and UCG specialists.

22 Countries represented : Argentina, Australia, Bangladesh, Belgium, Botswana, Brazil, Canada, Chile, China, Hungary, Indonesia, Ireland, Japan, Netherlands, Norway, Poland, Slovakia, South Africa, Thailand, UK, USA, Vietnam

The UCG Association


Underground Coal Gasification

• Leading industry exponents of UCG believe the technology has been proven beyond doubt

• Long running pilot plants - two in Australia, one South Africa, one in China

• Recent pilots have also taken place in New Zealand and Canada, two nations with green credentials

• None have progressed to commercial scale • There is only one commercial site in

operation - Angren, Uzbekistan • Operational for more than 50 years,

upgrade by Linc energy who are now major owners

• Though this is about to change


• Some believe the slow progress of UCG is that the technology still lacks proof of concept • Not at all • Lack of inclusion in national energy policy, or research objectives. • Hampers formation of Regulations, Licensing criteria, National and Local Planning guidelines, operational frameworks • Reticence is understandable against a backdrop of anti coal rhetoric • World Bank stance on funding for coal projects • Adverse impact on market confidence - the ability to raise investment

Policy Affects Progress


Lack of Public Acceptance

• Need to change the public view of the energy industry

• The public are not ill informed of Coal Technology they are not informed at all

• Need Public Information and Outreach Programmes

• Create understanding of research, development - via academia and research

• Highlight the benefits more than the process

• Literature - factual but not technical • UCG and Shale the same. • Science not opinion must inform

Policy Makers • Anti coal action – delay lower emission

technologies being deployed


Why the global interest?

Global Energy Challenge

Energy Poverty

Energy Security

Sustainable Supply

Climate Change

UCG addresses all of these issues


Benefits of UCG As the gasification of coal takes place underground many of the

advantages of UCG are obvious:

• No one works underground

• Less Surface Impact - No coal is brought to the surface

• Lower Fugitive Dust - Noise - Visual Impact- Ash

• Syngas can be piped directly to the end-user, reducing rail / road infrastructure

• Cheaper and easier site remediation on project completion


UCG – Lower emissions

• Particulates – 50% lower than surface equivalents, stay underground where they belong

• Harmful chemical vapours NOx, SOx, are captured and do not enter the atmosphere

• Reduced methane emissions - gas recovered not lost in atmosphere

• Leaves coal ash and other process wastes deep underground,

• Offers reduced environmental management and costs

• No external water supply – moisture in the coal

• Significant advantage for low rank, high ash coals such as India

• The whole process affords opportunities to use coal more effectively

• HELE – Higher Efficient Lower Emission technology.


UCG – CCUS Advantages

High pressure of a UCG power plant allows the full, higher-heating value of coal to be utilized, recovering the latent heat of vaporisation. UCG operates at up to 80-85% efficiency - the amount of the syngas recovered at the surface is about 80 - 85% of the original heating value of the coal feedstock. Enables the CO2 in the flue gas to be captured in a supercritical state suitable for Enhanced Oil Recovery (EOR) Enhanced Coal Bed Methane (ECBM) Carbon Capture Utilisation and Storage (CCUS)


UCG – Sustainable development

Coal an abundant natural resource - widely distributed, nine times more prevalent than crude oil. Nearly 80% of known coal reserves are deemed unmineable. The poorest nations - least choice of indigenous energy Applying UCG technology to, stranded, low grade coal

vastly increases recoverable coal reserves Estimates suggest increase of 300%-400%* Coal when applied to UCG becomes the largest

sustainable resource base in the world


UCG - Costs

Cost of UCG for Power Generation – UCGA 2010

The economics are attractive - lower Capex and Opex Plus as UCG is a multi disciplined technology it offers

employment opportunities and potential new revenue streams


Flexible Product Uses of Syngas


Worldwide UCG Activity


Summary - UCG has so much to offer UCG in deeper coal could contribute significantly to

global requirement for increased energy, reduced emissions.

Indigenous resource – security of supply, help industrial growth in the wake of the global economic crisis

Higher yield - at lower cost

Key to the safe commercialisation and growth of UCG – collaboration

Acceptance from all stakeholders – industry, government and regulatory bodies, social

UCGA strive to ensure all who operate at a commercial level do so responsibly and with the highest regard to safety and environment


The UCG Association

At the forefront of the developing

UCG Industry

Next UCGA International Conference and Workshop

London 9th/10th April 2014

Thank you for your attention

Julie Lauder CEO, UCGA

www.ucgassociation.org

http://www.ucgassociation.org/

underground coal gasification · wca international coal and climate summit warsaw, 19th november...

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